News
REBUILDING DOWNTOWN QUINCY
March 21, 2011
 |
| Six national retailers and six residential developers are talking to Street-Works Development about taking space in its $1.3B rebuild at Quincy Center. (The City recently approved the master plan and agreed to assume responsibility for $277M of new infrastructurein an unsual financing process.) We snapped Street-Works managing partner Ken Narva and leasing director Diana Chaselooking at a model for the 3.5M SF project: 1,200 rental apartments; 200k SF of street retail and food; 400k SF of larger format retail like department storesand cinema, two hotels, medical offices, a college, and parking for 5,500 vehicles. Street-Works is doing its own design, land acquisition, leasing, and construction, financing and marketing strategy. Ken says it has control of 90% of the 50 acres it will demolish and rebuild. It's now designing, leasing, and securing financing for the first group of buildings, which will be about one third of the project. |
 |
| S-W partner Richard Heapes and marketing coordinator Tiffanie Williams are standing in front of the project?s 15-year timeline. In December, the City agreed that it would float $300M in general obligation bonds for infrastructure such as new sidewalks, utilities, and parkland. In an unusual financing model, the private developer will finance the infrastructure work. Once the project starts to generate revenues from tenants and parking fees, the City will assume the infrastructure expense, issue the bonds, and repay them with the new income stream. Richard says in the future, this financing model may work for other municipalities that have good credit but are strapped for cash or income and need to fund public works. |
 |
| Street-Works development director Jeff Levien says the team has spent six years planning, permitting, and reaching agreement with the City. The state environmental permit, now in process, is thelast major permitting hurdle. Like many downtowns, Quincy Center has lost vitality to outlying malls and neighborhoods. But Ken says it still has the elements for revival. It's on the Red Line, is close to Boston, has an extensive waterfront, a growing population, good real estate market, and enduring historic character as the home of US presidents John and John Quincy Adams. The team plans to start infrastructure work mid 2012 and 10 years of construction mid 2013. |
